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FIRS Has Burden Of Refund Of VAT To Rivers, Court Affirms
A Federal High Court sitting in Port Harcourt, has stated that since the Federal Inland Revenue Service (FIRS) was ab-initio acting in error by collecting Value Added Tax (VAT) in Rivers State, and has huge burden of refund of those monies, there was need not to allow it incur further liability.
The court has also dismissed an application by FIRS, seeking to stop the Rivers State Government from collecting VAT in the state.
The FIRS, in suit no FHC/PH/CS/149/2020, had through a motion on notice, applied for a stay of execution on the earlier judgement of the court presided over by Justice Stephen Dalyop Pam, which declared that it was the constitutional role of state governments to collect VAT, and not FIRS.
Justice Pam, in his ruling on FIRS application for a stay of execution, last Monday, said the granting the application would negate the principle of equity.
He noted that the Rivers State Government, through the state House of Assembly, has duly enacted Rivers State Value Added Tax No. 4, 2021, which makes it legitimate right of the state to collect VAT.
According to the judge, every court in the country was constitutionally mandated to obey every legislation enacted by both the National and State Assemblies, respectively.
He explained that the Rivers State Government law on VAT remains valid until it has been set aside by a court of competent jurisdiction.
The judge declared that the FIRS application was refused and dismissed in the light of the fact that all subsisting laws concerning the collection of VAT stand in favour of the Rivers State Government.
Earlier, Justice Pam, who presided over the court, read a letter that FIRS lawyers had served the court seeking for stay of any ruling on their application.
But, in the absence of any requisite document that ought to have been attached to the letter, the judge dismissed the letter.
Speaking on the implication of the ruling, the counsel for Rivers State Government, Mark Agwu, said the Rivers State Government was still entitled to collect VAT within the state.
He said, “Today, the court has delivered its ruling dismissing the said application for stay of execution, though without cost. In fact, the court’s reason is that if it should grant stay, it is more or less like over- ruling itself.
“And then, since the court is empowered to recognize all laws enacted by the National Assembly or the state Houses of Assembly, therefore, that law (Rivers) stands, it is a substantive law.
“Therefore, the issue of collection of VAT as it stands today, Rivers State Government is still entitled to so collect. That is where we are today”, he argued.
In his reaction, Rivers State Commissioner for Finance, Budget and Economic Planning, Hon Isaac Kamalu said the decision by the Lordship has confirmed the position, both constitutionally and legally, that Rivers State Government has the authority to collect VAT.
“Well, first, we need to thank God. Second, we need to thank the judge for the courage. If you recall, the court had already declared that it is the Rivers State Government that has the constitutional responsibility for the collection of VAT.
“Following that decision of the High Court, which is binding on all parties and institutions, the Rivers State Government and the state Legislature has the Value Added Tax Law of Rivers State No. 4 of 2021 in force too.”
“I think the decision by the Lordship this morning is to confirm the position, both constitutionally and legally that the state has the authority to collect VAT.”
In his reaction, lead counsel to the Federal Inland Revenue Services (FIRS), Reuben Wanogho, said the court has delivered its ruling on the basis of how it saw the facts of the case before it.
According to him, they do not agree with the ruling, and already resolved to take all necessary steps to challenge it.
The Rivers State Chief judge, Justice Simeon Chibuzor Amadi has granted pardon to six inmates standing awaiting trial at the Port Harcourt maximum correctional center.
The six lucky inmates granted pardon on Tuesday by the state Chief Judge included Nwekeala Chizoba, Samuel Emmanuel, Aniete Kelvin, Ebube Fubara and Goddey Okpara who were on awaiting trial as murder suspects and have all spent between 10 years to seven years in the custody without a proper information filed against them in the court.
Justice Amadi during a special gaol delivery exercise last Tuesday at the Port Harcourt Maximum Correctional Centre opined that the special gaol delivery was part of activities lined up to commomerate the 2024/2025 legal year in the State and restated the commitment of the state judiciary in decongesting the correctional centre and ensuring that those inmates who are not supposed to be there are removed from the custody.
The state chief judge stressed the need for all stakeholders to work together to build a society that supports rehabilitation and gives a second chance to anyone or group of people who have fallen short of the expectation of the law and have been punished accordingly.
He stressed that the National Judicial Council(NJC) encourages judges to pay more attention to criminal matters to enable them to decongests the correctional facilities, noting that since his assumption into office, his administration has been able to reduce the number of inmates in Nigerian Correctional Centres and the Port Harcourt Correctional Centre in particular, to less than 2,000 as against the over 4,000 inmates previously in the faculty.
According to him, “as they release the deserving inmates, they affirm their commitment to justice, compassion and rule of law but that they must not forget the fundamental principles of justice delivery system which is truth and fairness, integrity and equality before the law.”
I encourage you all the released inmates to return to your families and become better citizens. You must not engage in action that will return you all back to prison. Let me say that while the judges show empathy to you all, it does not absolved individuals from being held accountable for actions against individuals, corporate organisations and state which the law frowns at, ”he stated
The Chief Judge thereafter stood down the exercise to enable the DPP to intervene to case files following the fact that majority of the persons listed to benefit from the exercise are facing murder charges and adjourned to a date that will come before December.
Earlier in his goodwill message, the outgoing state Comptroller of Nigerian Correctional Centre, Port Harcourt, Felix Lawrence, who was recently promoted to the rank of Assistant Controller General, commended the state judiciary led by Chief Judge, Justice Simeon Chibuzor Amadi for their continuous effort aimed at ensuring justice and decongesting the facilities.
Other activities lined up for the event included special church service at St Paul’s Cathedral , Anglican Communion, Rebisi Port Harcourt, inspection of guard of honour by the state Chief Judge mounted by officers of the Nigerian police and a special court session held at the ceremonial court hall.
By: AkujobiAmadi
The Director General of Rivers State Bureau on Public Procurement (RBoPP), Dr. Ine Briggs, has explained that the Sir Siminalayi Fubara administration plans to enforce transparency in governance through public procurement.
Speaking at a one-day Public Procurement Enlightenment workshop organised in collaboration with the State Local Government Service Commission for newly elected chairmen, vice chairmen, secretaries and leaders of legislative assemblies, Dr. Briggs said it is key for grassroot development.
She stated that the Sir. Fubara administration plans to reduce wastage and at same time infuse efficiency in public expenditure.
The RSoPP DG said the local government political office holders remain key drivers in the new vision hence the workshop is to arm them with knowledge on how to execute projects in tandem with needs of the people.
“ Your role in the prudent management of public resources is, therefore, not just administrative it’s the cornerstone of delivering the dividends of democracy. Every procurement decision you make must reflect a commitment to fairness, transparency and accountability” Dr. Briggs submitted.
One of the key goals of the administration she further reminded the participants was to use their offices to foster economic growth through public procurement.
She warned that the law establishing the agency empowers it to penalise defaulters, but that what is more important is voluntary compliance to the laws.
In addition to that, she said urged the local government council leaders that champion the practice and implementation of public procurement law.
On his part, Acting Chairman of Local Government Service Commission, Pastor GoodLife Ben Iduoku averred that the aim of the workshop is to arm key stakeholders in the local government system to generate new ideas, innovation and strategies in tandem with government policies and programmes.
The workshop dealt on various topics on procurement planning, methods, Understanding Bid Process, including types of Construction Contracts and law.
Some participants were awarded excellence and meritorious awards as part of the programme.
By: Kevin Nengia
The 19th anniversary of the National Association of Proprietors of Private Schools (NAPPS), Rivers State Chapter, recently ended in Port Harcourt in grand style, with participants from various schools including proprietors, the academia, civil society groups and top government functionaries charting the way forward for educational improvement.
The 19th NAPPS anniversary christened, ‘Innovation and Adaptation: Transforming Challenges Into Opportunities’ was held at Casoni Hotels, Port Harcourt.
In his remarks, the Chairman of the Rivers State Chapter of the association, Dr. Jaja Adafe Sunday expressed gratitude to the members and executives for their untiring efforts towards the achievements of the body.
He sought the intervention of government on the lingering crisis on the economy as it is affecting the running of schools.
He decried high cost of things including fuel and raw materials which has adversely affected the running of schools and payment of teachers.
Dr. Sunday hinted that the current economic situation in the nation is biting hard on the operations of schools, saying inflation, removal of fuel subsidy, fuel scarcity, poor electricity supply, tariffs and lack of government grants are some of the challenges faced by schools, and urged the members to brace up to the challenges, as it is the panacea to building a brighter future.
Guest speakers from the health sector and the academia thrilled the gathering on the essence of basic education which they said is the key to national development.
Former Dean of the Ignatius Ajuru University of Education, Professor Azuru and the Chief Medical Director of Meridian Hospitals, Dr. Odo Iyke were some notable guest speakers who delivered lectures at the occasion.
Some distinguished proprietors also got special recognitions and awards.
The 19th anniversary cake was cut by the Rivers State NAPPS Chairman with representatives of the state government assisting.